Kusumgar IPO Day 2: Strong Investor Demand Fuels GMP to 38% for Rs 650-Crore Offering.

Kusumgar’s IPO, targeting a total size of Rs 650 crore, is currently showing positive momentum as it enters its second day. With a price band set between Rs 398 and Rs 419 per share, the IPO has attracted substantial investor interest, evidenced by a Day 1 subscription rate of 3.45 times. The retail segment alone saw a subscription of 3.52 times against the allocated shares, while non-institutional investors outperformed with a subscription rate of 7.35 times. The public offer will remain accessible for subscription until July 10, 2026, with a projected listing date on the NSE and BSE slated for July 15, 2026.

In the grey market, Kusumgar’s shares are trading at a premium of Rs 160, equating to a notable 38% increase over the upper price band. This hints at a potential listing price around Rs 579. However, while the grey market premium offers some insight into market sentiment, it remains an unofficial indicator and does not assure investors of actual performance once shares hit the stock market. Investors are advised to consider the GMP alongside other financial metrics and company fundamentals when making their decisions.

The underlying fundamentals of Kusumgar’s business are promising, as evidenced by its financial growth—revenue reportedly increased to Rs 692 crore in FY26 from Rs 467.9 crore in FY24, alongside a rise in net profit. The company’s operational capabilities and its focus on advanced engineered fabrics place it in a robust position across various high-demand industries, including aerospace and automotive. This IPO, altogether, indicates a strong investment opportunity for Indian investors, particularly those looking to engage with companies exhibiting solid financial performance and innovative product offerings.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)